Capital markets regulator Sebi on Monday cancelled the registration of three entities — Kaynet Capital, Kaynet Commodities and Kaynet Finance — as stock brokers for not meeting the conditions required under intermediaries rules.
In addition, the Securities and Exchange Board of India (Sebi) has cancelled the registration of Kaynet Capital as depository participant. Irrespective of the cancellation of certificate of registration, the three entities would continue to be responsible for payment of outstanding fees or dues to Sebi, the regulator said.
In three separate orders, the regulator noted that the entities are not members of any stock exchange.
The membership of Kaynet Commodities was terminated by MCX in November 2020, while membership of Kaynet Finance was terminated by NSE in February 2020.
Further, the membership of Kaynet Capital was terminated by BSE in August 2019. It has been almost 3 years since its memberships with BSE and CDSL have been terminated.
Under the Stock Brokers Regulations, one of the conditions of registration is that the applicant is eligible to be admitted as a member of a stock exchange through which it has made the application to Sebi. Since the membership of the entities have been terminated, they no longer fulfil the conditions stipulated under the rules.
The present orders are the result of enquiry proceedings against the entities under Intermediaries Regulations.
